I'm in the process of taking on a member of staff part time. I don't hit the critera for registering as an employer, but I assume I still need to run a payroll system and supply them with payslips?
I'd have said an employee is an employee and the hmrc boys will want to know. You may not have to deduct tax and ni but you might pay over the lower earnings level at which point your employee does get credited with pension contributions.
As soon as you first employ someone, you will need to register as an employer with HMRC if one or more of the following is true:
you're paying them at or above the PAYE threshold the employee already has another job they are receiving a state or company pension you're paying them at or above the National Insurance Lower Earnings Limit you're providing them with employee benefits
None of these statements are true. It also says I don't need to submit a P46 if the employee has ticked box a or b and are below the LEL which they are.
So given that I'm not registering as an employer or telling HMRC about a new employee.... what DO I do?
As you're running your own then you're safe just keeping hold of the P46 forms but I wouldn't follow that rule forever. The more employees you have the greater the likelyhood that one will tell you porkies about their other income. There's also the chance that an employee will dispute signing or ticking those boxes.
On the other hand, if you file a P46, the code number is a matter between HMRC and the employee.
Just my take on it as I wouldn't feel comfortable just sitting on a P46 either. My stance might alter when RTI hits. Tim
I seem to think I have had a refusal a long time ago but as you said in elsewhere, an application record will cover your a***. The likelyhood is that they'd simply issue a PAYE Ref.
Employees can have their own reasons for not telling you the whole story, and as well as Gilly's point, you'd have to keep in mind their becoming 65 or receipt of other taxable benefits/income later on.
Taking on a PAYE scheme will be a burden or an expense, and you might consider monthly remuneration even if this means stumping a loan up front.
